Assessing Lithia Motors: Insights From 4 Financial Analysts

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Lithia Motors LAD underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 1 3 0 0
Last 30D 0 1 0 0 0
1M Ago 0 0 0 0 0
2M Ago 0 0 0 0 0
3M Ago 0 0 3 0 0

Analysts have recently evaluated Lithia Motors and provided 12-month price targets. The average target is $313.5, accompanied by a high estimate of $400.00 and a low estimate of $259.00. Marking an increase of 0.64%, the current average surpasses the previous average price target of $311.50.

Interpreting Analyst Ratings: A Closer Look

In examining recent analyst actions, we gain insights into how financial experts perceive Lithia Motors. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Douglas Dutton Evercore ISI Group Announces Outperform $400.00 -
Rajat Gupta JP Morgan Announces Neutral $295.00 -
Kate McShane Goldman Sachs Lowers Neutral $300.00 $348.00
Colin Langan Wells Fargo Lowers Equal-Weight $259.00 $275.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Lithia Motors. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Lithia Motors compared to the broader market.
  • Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Lithia Motors's stock. This examination reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Lithia Motors's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Lithia Motors analyst ratings.

About Lithia Motors

Lithia Motors is a retailer of new and used vehicles and related services. The company offers over 45 brands of vehicles at about 350 stores globally including 28 U.S. states at year-end 2022 and entered Canada in mid-2021 with the purchase of Pfaff Automotive and bought Jardine and soon Pendragon in the U.K. in 2023. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the U.S. and we expect more deals over time in the U.S. and abroad. Annual revenue in 2022 was $28.2 billion and we see over $50 billion possible in 2025. In 2022, new-car sales were about 46% of total revenue. Lithia was founded in 1946, went public in 1996, and is now the largest U.S. auto dealer. It is based in Medford, Oregon.

Financial Milestones: Lithia Motors's Journey

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Lithia Motors's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 13.45%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Lithia Motors's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.16% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Lithia Motors's ROE stands out, surpassing industry averages. With an impressive ROE of 4.45%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Lithia Motors's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.45%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.7.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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